4. CONTENTS
3 Introduction: Tales, Myths Legends
6 Your Neck Is On The Line
13 Question 1: Can You See Your Business “Reflection”?
15 Question 2: Can You Conjure Consensus?
17 Question 3: Would Your Customers Kill For You?
19 Question 4: Are You Buried In A “Product Coffin”?
22 Question 5: Does The Market See You As A Slayer… Or As Fresh Meat?
25 Question 6: Do You Have A Unique Market Position… Or Are You Swimming In An Ocean Of Red?
28 Question 7: Have You Sharpened Your “Brand Blade?”
32 Conclusion: Surviving ‘Til Sunrise
33 Appendix
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Table of
5. Slaying Your Value Vampires I ValueArc CEO eBook Series 3
Introduction
Tales, Myths Legends
There’s an old saying: blood is thicker than water.
And there’s no thicker blood than the kind that pumps through your business.
Nightmares. We’ve all experienced them. As a CEO or business leader, you’ve probably had your
fair share. There’s nothing more terrifying than being unprepared for a crucial board meeting or
having a key business deal fall through – only to wake up to the cold, sweaty reality that it was
just a dream... or was it?
Our tales, myths and legends are just stories – but they are deeply rooted in truth. Vampires
were born from a very real fear of darkness, death and the unknown. And yet, we find these
“demons” fascinating and even useful. We envy their strength, struggle to exploit their
weaknesses and almost always prevail with the power of light. This epic battle is as old as
mankind, and is continuously reflected in our storytelling – from Nosferatu to Dracula to Twilight.
So is it that hard to believe that these bloodsuckers might be living inside your business...
feasting on your growth? Perhaps they aren’t the Bella Lugosi or Edward Cullen variety –
but these unseen foes are hiding in the dark corners of your sales strategy, devouring your
productivity and draining your company’s perceived value in the marketplace. The question is:
can you stop them?
The answer is yes – and it won’t require any holy water or garlic. In this eBook, you’ll discover
the blood-curdling methods these monsters use to sink their teeth into your business while
remaining in the shadows. You’ll see how they “glamour” industry analysts with poor positioning
and messaging. By answering a few key questions, you can turn the tables on these monsters,
and drive a stake into the hearts of your own Value Vampires.
Good luck – and good hunting...
6. Slaying Your Value Vampires I ValueArc CEO eBook Series 4
Your Neck
IS ON THE LINE
If you’re the CEO of a high tech or B2B business, let’s face it:
your neck is always on the line (queue the horror film music...)
Competition is becoming a nightmare.Your products and
services are sliding into the commodity category.Your board
is bloodthirsty.“Grow or die” is your mantra, and the latter is
always lurking in the dark recesses of your balance sheet.
But the real drain on your growth might be your perceived value
by the market – and that can bite deeper than you think.
It’s time to shed some sunlight on these monsters – and bring
your growth back from the dead. Let’s explore the legend
of these “ValueVampires” that are feeding on your business
lifeblood, so you can draw them out of the shadows.
7. TheVery Real “Myth” of theValueVampires
Vampires.
It seems like you can’t change the channel or scour Netflix without running
into another teen-drama about these cold, lifeless yet disarmingly sexy
breed of beings. As culture, we’re fascinated by these creatures; their
mysterious underworld both frightens and intrigues us, and is glamorized
in media. True Blood, From Dusk ‘til Dawn, The Vampire Diaries… these
are just a few of the current permutations of the vampire lore in popular
television. The list goes on and on.
And why shouldn’t we be obsessed with these perfect monsters? They are
beyond human… they’re superhuman. They have managed to possess the
most desirable trait we could wish for: immortality. They live in the night,
where all the “fun” stuff happens. They have incredible power: strength,
speed, telepathy, flight… more than we can imagine. They can transform
their state (remember Dracula becoming the bat?), alter their age and
change their outward appearance. They can even enrapture their victims
by “glamouring” them – that is to say, use their powers of charm, beauty
and allure to reel the weak into their clutches (sounds a bit like George
Clooney, eh?)
In essence, vampires are terrifyingly equipped to overcome us. They are
seemingly unstoppable.
Except for a few choice (if not awkwardly convenient) weaknesses: Garlic.
Holy water. Wooden stakes. Crucifixes. And of course, sunlight. We have to
have some way to fight back, right?
Vampires may not be real, but they were born out of a real fear of the
unknown. We created our mythologies to explain the inexplicable, before
science and logic provided sound rationale. But even then, these legends
persisted, engrained into our cultural DNA. They were romanticized and
made part of our “mysticism.” In truth, they are the embodiment of our
human frailty, a corporeal reflection of our weakness, and an expression
of our belief in evil. So in that sense, these figments of imagination do
exist; they haunt us, follow us – and instill a crippling fear that is as old
as mankind.
In business, it is exactly the same.
As a CEO or company leader, you know fear. It’s stopped you dead in
your tracks. It’s kept you up at night like a horror movie. You might even
wield it as a weapon, helping you sharpen your focus and heighten your
situational awareness. There will always be things beyond your grasp, and
despite every effort to “peek around the corners” or “read the tea leaves,”
you will always be left with one certainty in this world: you can’t stop bad
things from happening.
But there are, indeed, ghosts in your “business machine” – and if you
know where to look, you can slay them.
Like the classic vampire persona, these nuisances possess many of the
same attributes. They are often hard to see; they blend in, becoming
invisible. They can be fast-moving targets, shifting from sales to marketing
to operations. They have a strong impact on your productivity and
efficiency. They often transform your market perception, “glamouring” your
executive team with a dense fog while misleading editors and analysts
with a lack of clarity. They drain your business of its value – and its
capacity to grow.
We call them Value Vampires. And they’re haunting you from the inside.
Slaying Your Value Vampires I ValueArc CEO eBook Series 5
8. Becoming a Slayer
If you were a fan of the iconic 90s serial Buffy the Vampire Slayer, you
might recall her unique power to locate nests and shake out the undead
with a few wooden stakes.
You might also recollect her uncanny ability to balance the responsibilities
of a “slayer” while attending high school. Turns out she had classmates
that were often lured into fangdom; who worries about GPAs when a
vampire just ate the kid that sat next to you in calculus?
Unfortunately, finding and defeating the Value Vampires in your business
requires a little more cunning – and a lot more than a 24-episode season.
If for no other reason, you may not know where to start looking for them.
It’s always best to start with the basics, so here are some clues that you
might have an infestation on your hands:
• You’re suddenly in a very loud, crowded and competitive market –
with new startups racing in every day
• Brands you know are suddenly entering your game with like products
and services, even copying your go-to-market strategy
• You’re frequently losing to competitors on price, and you’re feeling
the pressure to drop, drop, drop
• Analysts are viewing you as less innovative, less visionary – and more
of a commodity
• You haven’t been nurturing a “tribe” of loyal customers
• You’re on a “product treadmill,” pushing out upgrade after upgrade in
an effort to keep up with your key competitors
• You know your business has something unique to offer, but you just don’t
feel like the market perceives you as different, compelling or disruptive
Does this sound familiar?
Of course – because every business experiences these challenges.
What’s important to note is that it often creates fear… fear around growth,
fear around competition and fear of the future.
This is what attracts the monsters to feed.
Hiding in the Shadows
Value Vampires can manifest in a number of ways, but they typically
thrive in your company’s lack of clarity and consensus. Hidden in these
“shadows,” they make it difficult to see where your real value is, and how
to bring it out into the light.
When you don’t have a top-down vision that guides your company –
one you can clearly express to the market – then you’re not selling
with focus or intention. This creates confusion amongst your customers,
prospects and channels, and may lead them to qualify you as just another
“me too” player.
A clear vision can help plant the seeds of loyalty – and build the kind of
relationships that lead to explosive growth.
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9. TheValue Gap
Here’s the danger in not having a clear vision
and unique market claim – or the internal
consensus to support it:
The market will do it for you.
It’s true. Just think about it: when your propsects
turn to well-respected analysts for guidance on
your products, they’re listening to them – not
you. When customers Google your solutions,
they’re reading blogs and reports generated
by writers and editors, beyond your control. If
these views are left unchallenged, your market
perception – the “default position” of your
value – can be shaped by inaccuracies and
assumptions. This can lead to a commodity
categorization that places you in the same
league as your competitors, where decisions are
often made on price as opposed to relationship.
The Value Gap is the resulting “rift” between
your default position and your company’s
greatest strategic potential. It’s here that the
Value Vampires breed... sinking their teeth into
your perception and feeding on your potential.
To bridge this gap, you need to extend your
“value footprint” beyond its current limitations
and redefine your strategic relevance to your
your market. In addition, you need to provide a
visionary roadmap – one that answers the big
challenges that your customers face.
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YOUR
DEFAULT POSITION
Left unchallenged, the
market perception of your
value is shaped by limited or
inaccurate information and faulty
assumptions – including what
your competitors say about you.
Weak Positioning,
Limited Value
YOUR DESIRED
STRATEGIC POSITION
To achieve maximum value and
momentum in the market, you
must position your company as
an answer to the big challenges
faced by your customers.
Strategic Positioning,
Maximum Value
YOUR
DEFAULT POSITION
Left unchallenged, the
market perception of your
value is shaped by limited or
inaccurate information and faulty
assumptions – including what
your competitors say about you.
Weak Positioning,
Limited Value
THE VALUE GAP
YOUR DESIRED
STRATEGIC POSITION
To achieve maximum value and
momentum in the market, you
must position your company as
an answer to the big challenges
faced by your customers.
Strategic Positioning,
Maximum Value
YOUR
DEFAULT POSITION
Left unchallenged, the
market perception of your
value is shaped by limited or
inaccurate information and faulty
assumptions – including what
your competitors say about you.
Weak Positioning,
Limited Value
YOUR
DEFAULT POSITION
Left unchallenged, the
market perception of your
value is shaped by limited or
inaccurate information and faulty
assumptions – including what
your competitors say about you.
Weak Positioning,
Limited Value
YOUR
DEFAULT POSITION
Left unchallenged, the
market perception of your
value is shaped by limited or
inaccurate information and faulty
assumptions – including what
your competitors say about you.
Weak Positioning,
Limited Value
THE VALUE GAP
THE VALUE
ARC
YOUR DESIRED
STRATEGIC POSITION
To achieve maximum value and
momentum in the market, you
must position your company as
an answer to the big challenges
faced by your customers.
Strategic Positioning,
Maximum Value
YOUR
DEFAULT POSITION
Left unchallenged, the
market perception of your
value is shaped by limited or
inaccurate information and faulty
assumptions – including what
your competitors say about you.
Weak Positioning,
Limited Value
YOUR
DEFAULT POSITION
Left unchallenged, the
market perception of your
value is shaped by limited or
inaccurate information and faulty
assumptions – including what
your competitors say about you.
Weak Positioning,
Limited Value
YOUR
DEFAULT POSITION
Left unchallenged, the
market perception of your
value is shaped by limited or
inaccurate information and faulty
assumptions – including what
your competitors say about you.
Weak Positioning,
Limited Value
THE VALUE GAP
THE VALUE
ARC
YOUR DESIRED
STRATEGIC POSITION
To achieve maximum value and
momentum in the market, you
must position your company as
an answer to the big challenges
faced by your customers.
Strategic Positioning,
Maximum Value
Define strategic
relevance / benefits
to customers:
“Market Impact”
Extend the value definition:
“Value Footprint”
YOUR
DEFAULT POSITION
Left unchallenged, the
market perception of your
value is shaped by limited or
inaccurate information and faulty
assumptions – including what
your competitors say about you.
Weak Positioning,
Limited Value
YOUR
DEFAULT POSITION
Left unchallenged, the
market perception of your
value is shaped by limited or
inaccurate information and faulty
assumptions – including what
your competitors say about you.
Weak Positioning,
Limited Value
YOUR
DEFAULT POSITION
Left unchallenged, the
market perception of your
value is shaped by limited or
inaccurate information and faulty
assumptions – including what
your competitors say about you.
Weak Positioning,
Limited Value
The Value Gap: A Visualization
Climbing the ValueArc Workbook, 2016
10. Blood Doesn’t Lie –And Here’sThe Proof
The proof, they say, is in the blood.
Right now, you’re probably asking yourself: How do I find these Value
Vampires? How are they affecting my business? Where do I start looking?
Should I wear a garlic necklace? And how do I find silver bullets?
You’re right to be skeptical. But maybe the best way to illustrate the
impact of finding your greatest (and often unseen) value – the value
being drained by these invisible foes – is with a success story. Here’s an
example of how one business drove a stake through the heart of their own
Value Vampires:
It was a dark and stormy night… (queue thunder, lightning, rain, pipe
organ… you get the picture)
A medium-sized player in the Internet security market was digging its
own grave.
Perhaps that’s a little melodramatic. But in the hyper-competitive security
space, it wasn’t unusual to be here today… and gone tomorrow.
While relatively unknown, this relatively mature company had managed
to build a decent footprint across a number of enterprise networks. Their
point devices, from firewalls to intrusion prevention, were well-respected
and reliable. Largely seen as just a hardware provider, they had little to
no brand power – and were frequently losing to larger, more established
brands like Symantec. And while the enterprise shadow was growing
longer, niche startups were emerging, eating the smaller opportunities
downstream.
While InfoSec was a hot market – and continuing to heat up with constant
hacks and data breaches – they were struggling to build a “visionary”
reputation in the minds of analysts and editors. They knew the competitive
landscape would become more cluttered, and they lacked the capital
resources to invest in further acquisition or aggressive innovation.
What’s worse, they had climbed on to a “product treadmill,” upgrading
functionality just to stay in lockstep with their peers.
How could they bring their growth back from the dead? What was eating
away at their success?
The problem for this company wasn’t their technology. In fact, by every
measure, they had great products – even a few industry accolades and
certifications to prove it. Their problem was a lack of positioning.
On paper, they looked like everyone else: a commodity player in a world
of vanilla, “just-like-me” security solutions. They weren’t clear on what
their greatest value was to the market – or even who their ideal customers
were. They were being “bled dry” by their own demons. And defeating
them wasn’t going to be easy.
But here’s how they did it:
They started with a deep inspection of their core business value.
They asked questions like:
• What makes us truly unique – beyond our products?
• What claim could we make that is defensible against our competitors –
and how can we support it?
• How can we reposition ourselves without reinventing our product line...
or our business for that matter?
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11. • What do our customers really think of us? What about our partners?
• Have we earned the loyalty of our customers? If so, do we deserve it?
• What problem are we solving for the market that’s different from
everyone else?
• How do we add value without buying another company or technology?
• How can we sell a relationship instead of just a product or solution?
• How can we make our vision a more meaningful part of our messaging?
• What “buried treasure” might be unearthed to help tell our story in
a more compelling way?
• What tangible assets do we have that we weren’t utilizing?
As it turned out, the secret was hidden in their intangible assets.
That’s not unusual; in fact, over 70% of the market value for the SP 500*
is found in these types of intangibles – things like intellectual property,
patents, guaranteed SLAs and proprietary processes.
For this company, their greatest value wasn’t a new feature of their latest
integrated security device. And it wasn’t an aggressive new price for a
SKU on a sales slick. It was something below the surface – a part of their
development and innovation program that was never brought to the
forefront.
Their greatest “unseen” value was their intellectual property: a research
team of white-hat hackers and analysts that discovered vulnerabilities in
networks months before they were exploited. By issuing patches to their
own firewalls and intrusion prevention devices well ahead of attacks, they
essentially delivered security that was ahead of the threat.
Slaying Your Value Vampires I ValueArc CEO eBook Series 9
INTANGIBLE ASSETS
ACCOUNT FOR OVER
OF THE MARKET VALUE
FOR THE SP 500*
*OceanTomo, 2009 Intangible Asset Valuation of the SP 500
70%
12. And no one else could make this claim.
By pivoting their focus to a “preemptive security” platform, this company
transformed everything – and the key to unlocking their market potential
was consensus. From the CEO down, the entire organization adopted a
core mission: delivering security ahead of the threat. They moved away
from being “just another” hardware provider and elevated their value
as a strategic partner. They also shifted the conversation from hardware
to software, amplifying their innovation in the minds of consumers and
analysts. And a renewed focus on service and relationships moved them
out of the commodity category – and into a market of one.
And it was more than that. In developing this platform, the company’s
CEO prescribed a visionary roadmap for the entire industry – a future
of innovation that would automate security as a managed service, and
continue to drive the importance of a preemptive strategy. This radical
thinking brought the company to the steps of the nation’s Capitol,
helping to shape the government’s posture, policy making and investment
in Cybersecurity. It was a big move. And like all big moves, it involved risk.
But here’s the thing: it didn’t require any substantive changes to their
technology. There were no new products, no groundbreaking features
and no expensive acquisitions.
In fact, the only tack that occurred was enhancing the value of their brand.
Once marketing kicked in, the preemptive security message was abuzz
across industry media. The effect was viral, and leading analyst groups like
Gartner and Forrester took notice. The gap between their perceived value
as a “product company” and a “visionary partner” was closing – and it had
a profound impact on their revenue. More wins, bigger contracts and a
unique story helped elevate their position in the security landscape –
and attracted “suitors,” hungry to acquire their unique capabilities.
In the end, IBM purchased this mid-sized company for nearly fives times
their annual revenue. Talk about slaying your Value Vampires.
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THE SECRET TO
UNLOCKING THE pOWER
OF YOUR VALUE is
IN YOUR
Brand
13. SwimmingAway from the Oceans of “Red”
Not every company will be a target acquisition for Big Blue.
But any business – including yours – can transform its fortunes by
swimming away from the red… and finding their own “blue oceans.”
As part of your journey in this eBook, we’ll discuss the impact of Blue
Ocean Strategy by W. Chan Kim and Renée Mauborgne. This business
philosophy is key to overcoming your Value Vampires, and illustrates
how creativity and disruptive thinking can help move your business into
a market of one.
In the case of the internet security company, their “blue ocean” was
delivering security ahead of the threat. It changed everything – their
position, their perception and ultimately their stock price. It moved them
out of the commodity mindset and elevated their value across every
dimension.
All that’s waiting in the “red ocean” are the Vampires... sinking their
teeth into your growth…
CanThese Bloodsuckers Really Be Stopped?
Bram Stoker’s Van Helsing said it best: “We learn from failure, not from
success.”
Granted, he was talking about ways to kill Count Dracula. Not an easy task.
The good news is that, like Van Helsing, you can conquer these villains
with the right tools and the right guidance.
For your consideration, here are the seven key questions that can help
identify your company’s Value Vampires, and how repositioning your
greatest (and often unseen) value can bring your growth back from the
dead. But be warned, intrepid hunter: this tale is not for the faint of heart.
These beasts are hiding in every dark corner, waiting to strike…
As you move through each question, remember that you are not alone.
At the end of the book, you’ll learn how the ValueArc Platform can be the
hero of your story… helping you slay your demons and move your business
into the light.
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14. Slaying Your Value Vampires I ValueArc CEO eBook Series 12
Question 1
Can You
See Your Business
“Reflection”?
Corey Feldman knew it in The Lost Boys:
Vampires can’t see their own reflections.
Unless, of course, you invite them into your house…
When it comes to business, value isn’t always clear.
It’s often hidden – nay, invisible – and as elusive as a ghost.
It shifts and changes, moving from one place to another
within your organization.As a CEO, you might be too busy
putting out fires (or, maybe lighting torches and storming
Frankenstein’s castle) to really ponder the value that lies
beyond your products and services.
In fact, when was the last time you gazed into a mirror and
analyzed your company’s greatest value to the market?
15. Ask yourself:
• What kind of business are we today?
• Are we still in the same business we started? What has changed?
• What do we want to look like in five years? Will our current path
and strategy keep us alive until then?
• How has technology changed our mission and vision?
• Do our customers understand what we think our value is? Or do they
just see us as a price or a line item?
If you’ve ever been to a carnival and traversed the infamous House of
Mirrors, you’ll know how the word “fragmented” feels. While not seeing
your own reflection is alarming, it is equally dangerous to have multiple
reflections. Does your leadership team have a fragmented view of your
value to the market?
Speaking of carnivals, here’s a “midway” game that’s almost as fun as
“Guess Your Weight”:
Ask each member of your executive team to write down what they think
your company’s greatest value is to the market. If you have ten people
participate, you’re almost guaranteed to have ten different answers.
It’s a predictable response. Think about it: the VP of sales probably sees
your value differently than the VP of Engineering, or your CMO, or the
CTO. This “gap” in your internal perception of value is precisely why you
need a common voice. Maybe you already have a mission statement or
a business plan, but is everyone reflecting your company’s value in the
same way?
This is also why the relationship is so paramount. More than any widget’s
whiz-bang benefit, the relationship has the greatest potential to bring
every part of your organization to the value table, rallying around a single
market claim that elevates your connection to customers, partners and
analysts alike. So even if your sales managers and developers balance
your value equation differently, you can close the gap by focusing more on
selling a relationship.
A lack of consensus can be crippling to your organization. Much like
the House of Mirrors, you might be asking, which reflection is the REAL
one? You likely have different verticals, different industries and different
prospect “personas” as part of your broad marketing strategy – and each
one probably requires a different sales message. But do you have one
unifying voice… one visage they would all recognize and understand?
If you can’t see your own reflection, the consequences can be grave.
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Question 2
Can You Conjure
Consensus?
Vampires live in the spirit realm… in a world of magic and superstition.
So why do we believe in them?
It’s simple: if we tell ourselves the same story long enough, it becomes real.
If you’ve been operating with the same strategy for any length of time, it
may be difficult to see the dark forest through the trees.And when your
leadership team is accustomed to finding their “cheese” in the same
places (as prescribed by Spencer Johnson in his classic book,
Who Moved My Cheese?), it may be like…
Well, like exhuming a body from the cold, frozen ground.
So how do get everyone on the same page? How do you
break the curse and “conjure” consensus in your organization –
from top to bottom?
17. As noted in Question 1, it starts with examining your own reflection.
Conduct the internal polling exercise – and find out what your leadership
team really thinks your greatest value to the market is. As mentioned
before, you can expect different answers from a number of people, and
that’s a good sign that you’re not in alignment.
As a team, discuss the answers. Where are the similarities?
The differences? What was unexpected – and did it create a disruptive
point of view?
Here’s an example:
A few years ago, a small tokenization and key management solution
provider was struggling to grow. While their products were both innovative
and reliable, they were playing in a largely commodity space. Their brand
was unknown in the market, and they were hitting headwinds from larger,
more established manufacturers.
Gathering their executive team, they conducted the internal “reflection”
exercise to gauge what their greatest value to the market was – and the
answers were both enlightening and alarming. The sales lead fell in line
with the product’s core tenants, suggesting that their single platform for
encryption key management and logging was the foundation. Several
people zeroed in on their protection for PCI (payment card information)
and PHI (protected health information) from accidental loss or theft.
There were also other answers that danced around their “platform
agnostic” benefit.
But another manager suggested that their ability to simplify compliance
management across a number of regulatory issues was critical from an
operational and planning perspective.
This caused a disruptive and revelatory thought: are we really more of
an ERP company?
After some deeper discussion and consideration, the leadership team
synthesized their findings into a more comprehensive messaging platform
– one that positioned them not only as a technology company, but a
resource planning partner, helping companies reduce the complexity of
compliance management over data security and privacy.
Arriving at this destination required navigating some rough terrain. Their
team had to be open to looking in places that were often overlooked…
exploring the dark, muddy corners of their mission. But by chasing this
mindset, they were able to expand their view of value and elevate their
position – to be in a market of one.
Not long after, they were purchased by a much larger competitor.
Talk about a happy ending…
Vampires love curses. And the curse of confusion can be one of the most
chronic and crippling. To conjure consensus, start by examining your own
reflection – then go deeper to find out what others think of your value.
Once you’ve exposed your lack of consensus, you can work towards a
common value proposition and drive adoption across your organization.
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Question 3
Would
Your Customers
Kill For You?
In other words… would they die without
your products and services?
Are they legions of loyalists, or simply
sucking you dry on price?
If you haven’t engaged your tribe, it’s time
to ask them: what makes you choose us?
Now that you’ve conjured some consensus inside
your organization, it’s time to do the same outside.
Here’s how...
19. Talk to your five or ten of your best customers – ideally, clients of record
that have done business with you for an extended period of time. These
should be relationships that you hold in high regard, where trust and
honesty are assumed.
Ask them:
• Why do you continue to buy from us?
• How are we different from our competitors? (Be specific and name a few)
• Do you see as strategic? Do you see any part of what we do as
a commodity?
• Do you see us differently now than when we first started
working together?
• Are you loyal to our brand? If so, why?
• How would you describe the value of our relationship? How do our
people make a difference?
• How can we evolve the value of our partnership? What can we do better?
Many of these questions may seem logical – even predictable. But when
was the last time you had a one-on-one conversation with a customer
about something other than a contract renewal or a new product feature?
Use this opportunity to elevate the way they perceive you: as an invested
partner, as a resource focused on the quality of your relationship. Educate
them on your journey; why is the definition of value so important? What
have you divined from your leadership team – and what consensus have
you arrived at – that you can test or “bounce off” them?
Now, engage your channel partners, resellers and trusted consultants;
anyone that touches your product before it reaches your end customer.
Ask them the same set of questions. What revelations can they bring to
light that you didn’t see before? How can you use these interviews to
evolve your own internal perception of value? Does this alter anything that
you discovered during your internal exercises?
Once you’ve completed this leg of your trek, you’ll have even more insight
into your greatest value to the market. This is still just the beginning; you
have more hunting to do. But you’ll be more equipped than ever to storm
the subterranean lair and drive out the Vampires.
Sink your own teeth into uncovering why your customers keep coming
back – and make that a central part of your value story.
Slaying Your Value Vampires I ValueArc CEO eBook Series 17
20. Slaying Your Value Vampires I ValueArc CEO eBook Series 18
Question 4
Are You Buried in a
“Product Coffin”?
Every night, the tomb slides open and the hunt begins…
The hunger swells, and you quench your thirst for blood
in the same way – trapped in a vicious, horrific cycle.
And the cold truth sets in: you have become theVampire.
Sound like a nightmare? Or are you living it right now…
in your own business?
If your company is product-centric, it might be suffering
from the same affliction: a never-ending curse of upgrades
and “me too” offerings to help you compete – but not win.
21. And you tell yourself: I can’t afford to let the cobwebs grow. I need to
focus on the next upgrade.
If you’re in a product coffin, it’s time to open the lid and brave the sunlight.
How, you ask? By selling the value of your relationship. And that starts with
your “Why Story.”
Simon Sinek, author of Start With Why, has long been an advocate of
disrupting conventional business thinking. When it comes to elevating the
value of a brand, he prescribes a very simple methodology: first, tell your
customers and prospects why you do what you do. Follow this with how
you do it – and only then do you qualify it all with what you do.
Sounds easy, right?
OK. So it’s not a “silver bullet” that instantly solves everything. But the shift
in thinking is the key: it drives the value of your relationship and vision,
instead of just leading with your widget… how it does this, now does that,
now it costs less…
Sinek’s now famous example is Apple. By leading with their Why – to
inspire consumers to think differently – they engaged their market on a
more emotional and provocative level. They were perceived as innovative,
in touch with the future, and far more evolved in their own perception
of value.
Their How was focused on their pursuit of products that were both
simple and beautiful – still not suggesting anything about technology, but
something more aspirational… even spiritual.
By the time they arrive at their What, it doesn’t even matter if they make
computers, phones, MP3 players or TVs – because you’re not buying any
of that. You’re buying a brand… an image… a relationship.
Conversely, Dell (as Sinek points out) has always led with their What.
They have always made computers; cheap, unattractive and (questionably)
reliable machines. Cold, calculating… and without heart. And that has
consistently placed them in a commodity category against other
mass-produced boxes like Microsoft and Lenovo.
Now, we all know Apple as a multi-billion dollar market phenom. But here’s
a real-world example from an automotive aftermarket insurance reseller:
After struggling to find growth in a niche market, this mid-sized company
decided to jump-start their thinking and shift from selling products to
relationships. Rather than leading as a purveyor of extended warranties
for things like scratch-and-dent and drive train policies, they instead
emphasized their Why: to transform the entire dealership experience for
consumers.
Their How was focused on expanding the value the dealership’s impact on
their automobile’s performance – and their customer’s peace of mind.
Their What was exactly the same… except, it wasn’t. No longer defined by
their products, they could now expand into new solutions and services,
all supporting their core market claim. They left behind the tired, one-
dimensional perception as a vendor for insurance products – and became
a trusted partner for enhancing the value of the overall dealership
experience. And they achieved it all by focusing on – and leading with –
the relationship.
Slaying Your Value Vampires I ValueArc CEO eBook Series 19
22. Vampires, they say, don’t have souls. Neither do commodity products.
It’s easy to get trapped in your own “product coffin.” But it’s time to let in
the light. Ask yourself:
• How can we shift our focus from products to relationships?
• How can the analysis of our company’s greatest market value help
transform our Why story?
• How can we shift from ordinary to visionary?
• How can we break the product cycle and truly own our customer
relationships?
Don’t become your own Value Vampire. Bite back.
Slaying Your Value Vampires I ValueArc CEO eBook Series 20
TO TRANSFORM
YOUR COMPANY FROM
ORDINARY TO VISIONARY,
START WITH THE
WHY
23. Slaying Your Value Vampires I ValueArc CEO eBook Series 21
Question 5
Does the Market
See You as a Slayer…
or as Fresh Meat?
Editors…
Analysts…
Product reviewers…
Bloggers…
Are they singing your praises, or congregating like an
angry mob with pitchforks and torches?
If the chase is on, where do you run?
24. Not to mix “monster metaphors,” but we all remember the tragic plot from
Mary Shelley’s Frankenstein. Misunderstood and seeking acceptance,
Frankenstein’s creation is painted as an evil beast – and becomes a target
for the townspeople (who are out for blood). At each turn, he attempts to
fit in, to follow the tenants of normalcy and create social connections. But
his unfortunate form – an amalgam of different body parts from numerous
corpses – obscures his true self. In the end, they see only the monster.
At its core, it’s a story about the power of perception. During a pivotal
point in the timeline, this hideous creature even saves a little girl from
drowning – but her male companion misjudges his appearance, and
assumes he is attacking her.
Sometimes, appearances can be deceiving. And that is equally true in the
business realm.
If you’re paying attention to your market watchers, you’re already
becoming a victim of their storytelling. It might seem at times that they
have a chokehold on the world, that the sun rises and sets on their view
of all things. Gartner’s Magic Quadrant has evolved to become a Magna
Carta of sorts for business purchasing and procurement; in fact, your
position on this tiny map can dictate whether you make the short list
for a bid.
Are you visionary? Are you a mature player? Are you a laggard? Is your
technology becoming passé? Before you have a chance to answer any of
these questions, the analyst community has already passed judgment on
you… and not always for the best.
Editors and bloggers are doing it as well – shaping opinions and attitudes
on their own terms. There’s a saying: there is no such thing as bad press
– unless it’s bad press about you. The blogosphere has also become
an unpredictable, “Wild West” of content; you never know what these
gunslingers might say tomorrow about your latest upgrade.
But how, exactly, are these “Witches of Woe” crafting their opinions?
You.
Your content.
Your messages.
Your opinions.
It’s not to say that your actual product performance doesn’t impact
their reporting. These measures and metrics are of course critical. But
remember: these are people, just like you – sharing their research,
opinions and reaction. And they’re not just buying your product… they’re
buying your vision.
The fact is, if you don’t define your position in the market, the mob will
do it for you. They’ll see you as “fresh meat,” and exploit you gruesomely
across their content. Like Vampires, they can “glamour” an audience of
loyal readers and followers – charming their mindset and influencing
their decisions. These market watchers wield a trust and power that is
unmatched; they can even be dead-wrong, and people will still seek their
validation. And your prospects won’t know where the gaps are because
they’re following the “glamouring” like sheep to the slaughter.
It’s not personal… it’s just a vampire-eat-human world out there.
To survive, you must become a slayer.
Want the market watchers on your side? Give them a vision that changes
the conversation. Fight them off by sharing your unique market claim –
your greatest value – as part of your “Why Story.” Give them a narrative
they can sink their teeth into, a path that guides them past the product and
into the future.
Slaying Your Value Vampires I ValueArc CEO eBook Series 22
25. Here are a few places where you can invest your energy:
• Invest in listening strategies and VOC (voice of the customer) campaigns
to test broad market sentiment around your products, value and overall
brand; what are the analysts, editors and even consumers saying about
you? How does this compare to your analysis of your greatest
market value?
• Turn your business into a “content engine” that brings a laser focus to
your “Why Story”
• Build an inbound/content marketing program that attracts more of the
right eyeballs to your messaging
• Develop more thought leadership (white papers, executive briefs,
eBooks) that positions you as the expert voice in your market – and
clearly frames your value
• Elevate your focus on relationships in your content and analyst
presentations – not just products, technology and innovation
You can’t outrun the mob. Even if you gain ground, you’ll always be
looking over your shoulder. Instead, face them head on. You can’t hope to
control what the market says about your business – but when you take a
proactive stance, you can help shape it.
When you own your value and your Why Story, you have more power than
you think.
And that’s what a good slayer needs: power.
Slaying Your Value Vampires I ValueArc CEO eBook Series 23
TURN YOUR
BUSINESS INTO A
THAT BRINGS A LASER FOCUS
TO YOUR “WHY STORY”
CONTENT
ENGINE
26. Slaying Your Value Vampires I ValueArc CEO eBook Series 24
Question 6
Do You Have a Unique Market
Position… Or Are You Swimming
in an Ocean of
red?
If you’ve ever seen Jaws, you might remember the story
of The Indianapolis.
As Quint recites his terrifying tale, there’s
one line that raises the hair on your neck
and haunts your dreams:
“You know the thing about a shark...
he’s got lifeless eyes,black eyes,
like a doll’s eye.When he
comes at ya,doesn’t seem to
be livin’.Until he bites ya
and those black eyes roll over white...”
27. Sharks. Vampires. They have one thing in common:
an insatiable thirst for blood.
Like these superhuman species of legend, sharks seem equipped to
devour us. They are incredibly fast, extremely agile – and they can detect
one drop of blood in a million drops of water. They are, in essence,
perfect hunters.
And like vampires, they attack from the darkness, below the water and
drowned in shadows. We almost never see them before they bite – and
that’s probably our greatest weakness: not knowing.
Now, imagine a red ocean: a deep, harrowing sea that is filled with these
deadly predators. Would you see the threat beneath the surface, nipping
at your feet… or spot the fins gliding towards you? How would you survive?
By swimming away… to a blue ocean.
If you’re familiar with the business philosophy known as “Blue Ocean
Strategy”, you know what this means. If not, it’s pretty simple: “red” means
“blood.” As in bloody competition. As in a sea full of hungry, desperate,
commoditized players… hunting for the same customers.
The only way out is to swim to a “blue ocean,” where you are alone…
and positioned to compete in a market of one. It’s your safe harbor – a
place where you can build the right messaging to stave off the fangs
of competition. Having a unique market claim that is disruptive and
defensible and is the key.
Blue Ocean Strategy, written by W. Chan Kim and Renée Mauborgne, is
a primer for discovering your company’s greatest value – and positioning
yourself as a truly unique brand in a sea of commodity. It provides several
examples of how businesses changed everything by finding an unmet
need in the market, and closed the gap with disruptive offerings.
It demonstrates the power of a brand to “tune out” the noise in any
industry – from TiVo in tech to Cirque du Soleil in entertainment –
by solving real problems in new and often “unseen” ways.
One of the best examples from the book is Yellow Tail Wines. Even if
you’re not a connoisseur of the “vino,” you’d probably recognize their
label, which features the unmistakable image of a yellow kangaroo.
Yellow Tail, as the story goes, was not a wunderkind brand. They were
small, unknown, not terribly sophisticated – and not awash with cash.
The wine market was getting crowded – with high-end, well-established
brands duking it out at the top, and the “wine-in-the-box” varietals
pounding each other at the bottom.
In contrast, Yellow Tail swam against the current. They saw an opportunity
in the middle of the market, where a fresh, distinct brand for wine could
flourish. People were tired of the stuffy, old-world Bordeaux and the cheap
sting of wine coolers; no one offered a wine that was fun, non-traditional
and easy to drink (translation: it tasted good).
Rather than stealing market share from either end of the spectrum, they
simply grew the market. They employed the tenants of the Blue Ocean
“Four Actions Framework”, which enabled them to:
• Reduce the complexity of the wines they offered and shifted the focus
away from the “prestige” of the vineyard
• Create products that the industry has never offered – wines that were
“fun,” “adventurous” and “easy” to drink
• Raise the perception of the value of wine – and elevate the role of
retailers in promoting it
Slaying Your Value Vampires I ValueArc CEO eBook Series 25
28. • Eliminate the factors that the industry expects – like stuffy academic
terminology and the importance of “aging”
Yellow Tail did more than grow the market. They streamlined their
manufacturing, eliminating the range and complexity of multiple products
that other vintners offered. Rather than confuse and dilute the decision
cycle, they limited their line to just a few varietals and only two kinds
of bottles.
By “blending” their overall strategy, Yellow Tail developed a sophisticated
hybrid – one that appealed to a higher-end market accustomed to more
expensive brands, but with a price point that made it affordable to “pop
a cork” everyday. But the real stroke of genius was the playful nature of
their brand’s label: a kangaroo. That, along with their Australian lineage,
positioned them as a more exotic and attractive experience.
And that’s the key. They told a “Why Story” about the customer’s
experience – one that was fun, spirited and adventurous. It struck a more
emotional chord as well, which resonated far beyond the wine enthusiast
category. This is what helped them expand the overall wine market.
What’s more, Yellow Tail achieved all of this success with little to no
investment in media or advertising.
While the Yellow Tail example may seem like an anomaly, it’s more
achievable than you think. In fact, some of the most successful and
disruptive brands in the world have “leapfrogged” over the competition
by swimming away from the terrors of the red tide to find their own
blue ocean.
You can do it, too. Start by asking yourself:
• How can we position ourselves to be truly different from our competitors?
What parts of our offerings can be made distinct, so we’re no longer
competing as a commodity?
• What areas of our market are being underserved? Where are there
opportunities to improve the customer experience and solve problems?
• What aren’t we seeing? What might we be missing, and can we engage
our customers to help us answer that question?
• Are there places where our products and services can be repositioned
to expand our market?
• What assets do we have right now that the market isn’t seeing? What
parts of our “Why Story” can be amplified to expand our value to our
existing market, and perhaps to new markets?
Blue Ocean Strategy can be a real gamechanger for your business. That
said, it doesn’t necessarily provide a roadmap for transforming what you
already have: intangible assets that may be “hidden” from your view, just
waiting to be woven into your positioning. TiVo was incredibly disruptive
at the time it entered the market… but not every company has that level of
innovation in their bag of tricks.
So dig deeper. Get below the surface. Turn over rocks. Inventory
everything – and see what pops out. Chances are, you have more value
hidden in your business than you ever thought. And that might be more
than enough to get you out of the red water… and into the blue.
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29. Slaying Your Value Vampires I ValueArc CEO eBook Series 27
Question 7
Have You
Sharpened Your
“Brand Blade?”
In the vampire genre, wooden stakes and silver swords have
long been the weapons of choice – even for the most reluctant
and inexperienced slayer. In fact, Dennis Miller had to wield
them in Bordello of Blood.
Unfortunately, a Medieval weapon couldn’t be used to stop the
film from being made. But that’s another story...
On this journey to vanquish yourValueVampires, you’ll delve
deep – deep into the dark recesses of your business.And you
should be just as equipped to protect yourself.
So where do you turn? Crucifixes?Tanning beds?
There are many weapons in your arsenal – but the one
most often overlooked is your brand.
30. It might be your most powerful ally for conquering perceptions and
overcoming doubt in your marketplace. And it’s always a trusty partner
for thwarting the undead.
What’s best: it’s an intangible asset, one that doesn’t require significant
cost and effort to change or enhance. The key to unlocking its power?
Having it perfectly aligned with your messaging and positioning.
Whether you know it or not, your brand is having a conversation with your
market when you’re not there. That means it should behave like a sales
person, nurturing a prospect into your experience – just as you would. It
should project your core values and support your “Why Story” in the most
compelling and disruptive way possible. Most importantly, it should be
aspirational; an expression of the company you want to be in five years.
Let’s start with the basics. There are three commonly accepted categories
for measuring the current value of your brand:
• Awareness
• Retention
• Loyalty
How well know does the market know your brand? Are you top of mind
when a business or consumer is ready to buy? And once they buy, are they
inclined to buy from you again? According the BrandZ, brand accounts for
one third of the value of Fortune 500 companies, so understanding the
value of your own brand should be a key part of your strategy.
Once you’ve gained consensus around your greatest value to your market –
and you’ve tested and validated your findings – it’s time to sharpen your
“brand blade” and have it reflect this message.
When we talk about “brand,” we’re not just examining the visual aspects.
Your brand is an ecosystem; a multi-sensory experience that should
encompass all of your communications. Wherever a customer or prospect
can be influenced – from Web content to imagery to sales scripts – your
brand should be there.
Another important point: your brand is both internal and external. It starts
with your employees. They need a solid understanding of it – and what it
means for your customers. Everyone in your organization is a salesperson;
when each employee (from leadership down to the trenches) adopts and
embraces how your brand expresses value, they can all help carry
the water.
If you’re like most companies, you know your brand could be working
harder to strategically position you in the market. So… how is your brand
working (or not working) right now? Is it representing your greatest value?
Slaying Your Value Vampires I ValueArc CEO eBook Series 28
BRAND
ACCOUNTS FOR
OF THE VALUE OF
FORTUNE 500 COMPANIES*
OneThird
*Margaret Reynolds, BreakthroughMasters Blog and BrandZ, 2013
31. Is your brand sophisticated? Is it in league
with Apple… or does it look and feel more like 1999?
Does your brand evoke a “world-class”
company on the move?
Does it represent the company you
want to be in five years?
Is it clear? Is your brand free of clutter,
lightweight and easy to understand?
Is it distinct? Does your visual brand stand
apart from your competitors?
Does your “Brandscape” (colors, typography, imagery)
provide a unique experience for your audience?
Is your brand consistent? Is it widely adopted
across all of your communications?
Is it extensible? Is it “transportable” to other
communication channels within your brand strategy?
Does it integrate the messaging and positioning
that reflects your greatest value to your market?
Is your content “on-brand”? Does it have a unique
“voice” and attitude that distinguishes it from the
rest of the market? If so, is it being used consistently
across all of your media?
Can your customers and prospects experience
your brand? Is it multi-sensory? If so, is it consistent
across each experiential channel?
Have you earned – and measured – your brand
awareness, retention and loyalty with your customers?
Slaying Your Value Vampires I ValueArc CEO eBook Series 29
Brand Blood Test
Here’s a quick quiz you can take to get some insight (score yourself on a scale of 1 to 5):
1 2 3 4 5 1 2 3 4 5
1 2 3 4 5 1 2 3 4 5
1 2 3 4 5 1 2 3 4 5
1 2 3 4 5 1 2 3 4 5
1 2 3 4 5 1 2 3 4 5
1 2 3 4 5 1 2 3 4 5
32. So how did you do? Is your “Brand Blood Type” positive… or negative?
Maybe you’re doing OK… and maybe the Crypt Keeper is laughing at your
logo. If you’re not sure, engage other members of your leadership team.
How would they score your brand? How do your trusted customers and
prospects see you?
Regardless of your score, the good news is that your brand is less
expensive to modify than your product line. That makes it the best tool for
making a significant move in your market – especially in the near term.
Retooling hardware or enhancing software can be rigorous and costly,
and make take months to change; your brand, on the other hand, can be
upgraded tomorrow.
Vampires are creatures of habit. They resist change. Heck, they’re
immortal… so nothing about them ever changes.
The fact is, if your brand is behaving in the same way, it’s not projecting
the position you want to be in – or the company you aspire to be. Your
brand is your greatest secret weapon this fight; with it, you can mold
messages, shape perceptions and tell the market your “Why Story” on
your own terms.
Sharpen your “Brand Blade.” And start cutting down the competition.
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33. Slaying Your Value Vampires I ValueArc CEO eBook Series 31
Conclusion
Surviving ‘til Sunrise
Here’s a universal truth: we all love stories.
The myths and legends aboutVampires are no exception...
or any monster for that matter.
Over time, we’ve watched these tales transform, bringing new life to the undead.
We’ve even discovered that Abraham Lincoln himself was a Vampire hunter. Who knew?
Our stories are always being rewritten – and the same is true of business. The market is fluid,
constantly changing, dropping new challenges and unseen obstacles at your front door.
The question is: will you let them in?
The concept of “Value Vampires” may be a figment of imagination, but it represents a
very real threat to your future. While the thoughts and strategies in this eBook are designed
to help you hunt down and slay these enigmas, they’re like bats in the belfry. They linger –
and despite your best efforts, often return from the dead.
So how do you survive ‘til sunrise? You remain vigilant.
Keep these questions handy. Ask them whenever you hit whitewater and growth becomes
elusive. Make sure you can see your own reflection. Never give up the quest to uncover value
in your company – even if it’s hidden in the darkest places.
And remember: curses are meant to be broken.
34. APPENDIX
The ValueArc™
Program
Even Van Helsing found Transylvania a little hard to get to…
so he had help.
Now that you’ve explored this eBook, you may be asking: who can I talk
to about finding hidden value in my company and repositioning it? And is
there a program or a system that can help me through this process?
The answer is yes. It’s called ValueArc™ – and it’s a proven methodology
trusted by dozens of companies, from startups to the Fortune 500.
ValueArc’s unique approach has helped businesses accelerate their
growth and reach strategic goals like increased market share, higher stock
value – even a faster path to IPO or acquisition.
The ValueArc Basecamp Program is an intensive, hands-on research
and analysis engagement, designed to help uncover unseen value in
organizations and create consensus amongst leadership teams.
The ValueArc Ascent Program helps sharpen your “Branding Blade.” It
starts by conducting a comprehensive Brandscape analysis of your market
and competitors, and recommends key enhancements in your brand
posture to maximize clarity and consistency – and create disruption.
The ValueArc Horizon Program broadcasts your message with the
right integrated mix of media and content. This go-to-market “blueprint”
provides a map for reaching your ideal target audience, and leverages the
power of inbound marketing to draw more eyeballs to your offerings.
To learn more about ValueArc, visit www.valuearc.com
Slaying Your Value Vampires I ValueArc CEO eBook Series 32
35. APPENDIX
ABOUT THE AUTHORS
Matt Garrepy matt@valuearc.com
For nearly two decades, Matt has been the Creative Director and Chief Creative Officer for DaynerHall. In that time, he has worked with
some of the largest corporate brands in the computer hardware, software, financial and security fields – from startups to the Fortune 1000.
This includes such notable brands as IBM, Microsoft, Verizon, Sprint, Lockheed Martin, VERITAS, FIS and Harmonic. As a former Senior Art
Director for MARC USA, Matt also worked with some of the most prestigious hospitality and entertainment brands in the world, including
Hilton and Universal Studios.
Drawing on his deep experience in devising and applying innovative branding strategies that have helped lead dozens of companies
through mergers, acquisitions and IPOs, Matt helped co-create the ValueArc System. In his role as Chief Brand Architect for ValueArc,
Matt oversees the development of brand audits, brandscapes and brand blueprints that result in powerful go-to-market architectures. His
reputation has made him a sought-after guest speaker on topics ranging from marketing and brand positioning to creative development
and delivery. Matt attended Flagler College, where he graduated summa cum laude with degrees in advertising, public relations and
commercial art. He is also a National Merit and Lewis Scholar, and the recipient of numerous gold and silver Addy awards.
Kitt Hancock kitt@valuearc.com
As both the president of DaynerHall and one of the creators of ValueArc, Kitt has been central in developing and enhancing the
ValueArc System for over a decade. A seasoned B2B and high-tech marketing pro, he has spearheaded the strategic planning, creative
development and account management efforts for dozens of global brands, including IBM, VERITAS, FIS, Microsoft, Motorola, Verizon,
Harris, Siemens, Lockheed Martin, GE, Westinghouse, FedEx, Genicom and Mitsubishi.
Kitt plays a lead role in shaping and delivering the ValueArc program. This includes managing the messaging and positioning, brand
strategy development, channel support and partner nurturing. He has helped dozens of companies – from startups to the Fortune 1000
– create brand positioning and messaging platforms by “value mining” their untapped potential to maximize their market valuations. Kitt
earned his Bachelor of Science Degree in Advertising from the University of Florida. He has also attended numerous industry tradeshows,
trainings and events across a spectrum of technology specialty areas, with a unique focus in Internet security. His reputation as a veteran
B2B strategist has made him a sought-after speaker on the subjects of marketing, branding and sales enablement.
Slaying Your Value Vampires I ValueArc CEO eBook Series 33